The department store chain is teaming up with the Sparc Group in an all-equity merger to form Catalyst Brands, the Wall Street Journal reported. The company will be led by Marc Rosen, who most recently served as the chief executive officer of JCPenney. It will be based in Plano, Texas, where JCPenney is headquartered.

JCPenney is merging with a company that owns a number of other once-bankrupt clothing stores, including Forever 21 and Brooks Brothers, to form a new company that will hold significant sway over the future of America’s malls.

JCPenney is combining with the owner of fellow shopping mall staples Aéropostale and Lucky Brand after a merger of two brand portfolios in an all-equity transaction Wednesday.

JCPenney announced Thursday the company merged with SPARC Group, to form a larger retail organization called Catalyst Brands.